RBC to price one-year contingent income autocallables on Whole Foods

By Toni Weeks

San Luis Obispo, Calif., Jan. 22 – Royal Bank of Canada plans to price contingent income autocallable securities due Feb. 4, 2016 linked to Whole Foods Market, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if Whole Foods stock closes at or above the 80% downside threshold level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first three quarterly determination dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below its 80% downside threshold level, in which case the payout will be a number of Whole Foods shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.

The notes will price Jan. 30 and settle Feb. 4.

The Cusip number is 780082327.

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